Virsto Adds $5 Million to Oversubscribed Series B Round

Virsto Software has executed a follow on investment of $5 million to its June 8 Series B round, bringing the total investment in the round to $17 million.

Southern Cross Venture Partners and Correlation Ventures join as new investors in the syndicate that already included InterWest Partners, August Capital and Canaan Partners. Southern Cross was an investor in EvoStor, an Australia-based developer of storage solutions for the VMware market, which Virsto acquired earlier this year.
 
The additional funding will be used to accelerate growth, broaden industry partnerships and expand hiring to support continued innovation in Virsto’s products that bring performance, functionality and cost back into line for storage in virtual environments. The company also plans to use the proceeds to enter the VMware market this year.
 
Founded in 2007, Virsto has developed a multi-platform VM-centric storage hypervisor.

A partner of Citrix, Microsoft, and VMware, the company has a track record of innovation in storage virtualization software for virtual machines. Virsto’s software lets all organizations, including enterprise, private and public cloud customers, change the economics of storage in server and desktop virtualization, increasing performance and management flexibility while dramatically lowering storage costs.
 
"After announcing the first tranche of our series B equity round in June, the inbound interest from venture and strategic investors was overwhelming. Given the size of the opportunity we face, we decided to add to our war chest so we can pursue a number of strategic initiatives. The Virsto vision is to transform data storage in virtualized computing and in the process radically alter the economics for our enterprise and cloud customers. This additional capital will allow us to leverage our technology into more markets and expand alliances with hardware, software, and cloud partners," said Mark Davis, CEO, Virsto.
 
"Working with Virsto since last year, we’ve been impressed by the team and their innovative approach. Southern Cross are big believers in the market for storage solutions that solve the unique storage problems caused by virtual computing, and are excited about Virsto’s high-leverage, differentiated software business model. The Virsto team has a compelling vision and has proven their ability to execute. We are confident in their ability to deliver a new virtual storage architecture for the benefit of the IT industry at large," said John Scull, Southern Cross Venture Partners.
 
"We are very pleased to be co-investing alongside a world-class investor syndicate, backing a highly experienced team building this promising company," said Trevor Kienzle, Correlation Partners.

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